IPTV missed expectations. Can regulation do the trick? Eugenio Prosperetti - University of Rome “Tor Vergata” -
[email protected] Guido Tripaldi - Consorzio Voipex and Equiliber Scientific Board -
[email protected] Vincenzo Visco Comandini - University of Rome “Tor Vergata” and ISIMM -
[email protected] November, 2007 Paper for III Annual Conference Bocconi University, Milan 9-10 November 2007 Società Italiana di Diritto ed Economia - Italian Society of Law and Economics www.side-isle.it SIDE-ISLE CONFERENCE 2007 IPTV missed expectations. Can regulation do the trick? Milano Bocconi University E.Prosperetti, G.Tripaldi, V.Visco Comandini ABSTRACT IPTV is the natural evolution of the traditional television, in all industrialized countries facing a diminishing revenue and audience trend. U.S. broadcasters are asking audience to view each show “live” and not recorded (or peer-to-peer) as to ensure audience to their advertisers and, as a consequence, financing to subsequent episodes of the show. This is a challenge posed by the so-called Martini generation, which demands content “anytime, anyplace, anywhere”, and is not satisfied by traditional television since its approach is to use different media à la carte. For these customers, the right of choosing when and where to watch contents (TV serials, shows, news, movies) is very important, therefore putting at risk the traditional broadcasting distribution mode that imposes a simultaneous one-to-many consumption including additional advertising. There are few doubts that IPTV is the natural substitute of television for the most advanced users but, then again, one must consider that there are many different kinds of IPTV, there are no standard definitions for IPTV and there are several business and regulatory models.